Turf war possible among venues in chase for Rockford funding

There’s a battle brewing over money and control of four city-affiliated agencies that, collectively, deliver a one-two punch of cultural and economic value to the Rock River Valley.

Isaac Guerrero

There’s a battle brewing over money and control of four city-affiliated agencies that, collectively, deliver a one-two punch of cultural and economic value to the Rock River Valley.

The MetroCentre, awash in red ink, was on the ropes in Round 1. Its future is in the hands of city and arena officials, who will recommend how much the city needs to subsidize the downtown arena.

In Round 2, three more agencies will step into the ring. And an advisory committee will determine how the city’s hotel/motel tax and Redevelopment Fund — about $5 million — should be spent on the arena, Coronado Performing Arts Center, Rockford Area Convention & Visitors Bureau and On the Waterfront.

The goal, Mayor Larry Morrissey said, is to spend the city’s limited dollars wisely. And while it’s clear that he wants to bolster subsidies for the MetroCentre and Coronado, the effect that would have on the tourism bureau, On the Waterfront and other groups and projects is less certain.

“People are going to protect their turf,” said Winnebago County Board member Ted Biondo, who will represent the county on the advisory committee. “But there are also people that want to have all the information and make the right decisions for the community.

“I think we can maintain civility with each other, but I’m not sure where we are going to wind up because there will be all these different interests at the table.”

Twenty people will be sitting at that table. The advisory committee will consist of two city and two Winnebago County representatives, two board members or staffers from the affected organizations and six community members to be approved by the City Council.

Morrissey will announce the panel membership Monday; the committee will deliver its recommendations to aldermen by July 27.

Shift in Redevelopment
The Redevelopment Fund was established three decades ago, primarily to finance MetroCentre Authority operating deficits, according to its mission statement, but also economic development throughout the city.

The 2009 fund is financed by a 5 percent tax on motel and room charges and a 1 percent tax on food and liquor and package liquor sales.

“If you go back to why the Redevelopment Fund was established, you’ll see it was set up to assist the MetroCentre and, secondly, to assist other downtown and economic development initiatives,” Morrissey said. “Over the years, we’ve gotten away from that. We’ve parsed out that money to all kinds of different things.”

Indeed, the MetroCentre is budgeted to receive only 25 percent — $896,941 — of the $3.7 million Redevelopment Fund this year. An additional $1 million is being funneled to the Coronado.

The rest is divided among myriad of projects, including $250,000 to the Rockford Area Economic Development Council, $530,000 worth of overtime wages for police, fire and public works employees for costs associated with festivals, $150,000 for hardware expenses related to a regional fiber optic ring and $50,000 to the Southwest Ideas for Today and Tomorrow business group.

The Coronado does not face immediate financial stress like that of the MetroCentre, which asked the city in April for an emergency $600,000 loan to pay its bills and meet payroll expenses. When the Coronado divorced itself from MetroCentre Authority management in 2006, consultants recommended about $250,000 a year in public support to keep the nonprofit agency healthy.

The Coronado has made significant strides since then to boost its fundraising, ticket sales and rental income. But more public tax dollars will be needed to keep the historic performing arts theater stable in the long term, board Chairman Craig Thomas said.

Of the $1 million the Redevelopment Fund doles out to the Coronado this year, $150,000 goes toward daily operations. The rest pays for building maintenance and the debt from the Coronado’s 1999 renovation.

“We’ve had informal discussions with the county about some assistance, but there’s been no formal request to date,” Thomas said.

Hotel tax at stake, too
The city’s hotel/motel tax also will be under the microscope as the advisory group gets down to business. The tax is a 5 percent levy on hotel and motel room receipts. All but about $100,000 of the $1.77 million the fund will generate this year is passed on to the tourism bureau.

The bureau also receives hotel/motel tax dollars from Winnebago County and marketing grants. About 55 percent of its $2.9 million annual budget is spent on marketing regional attractions to visitors. The rest is spent on salaries and daily operations. RACVB board member Rena Cotsones isn’t sure what to expect when the advisory group convenes.

“I really hope it’s more than everyone gets around the table and everyone gets handed a bill,” Cotsones said. “I believe the mayor when he says we need to all get to the table and talk about how we can help out the MetroCentre. But if there’s an end result in mind already, then let’s stop right now. I hope this will be a positive, community-wide discussion.”

Morrissey said this year he favors shifting some of the city’s hotel/motel tax receipts toward a construction project that would add to the region’s array of tourism attractions. Rockford does little convention business, he points out, because the city lacks a proper convention center.

But, he said, he’ll let the advisory group do its job. He won’t speculate how much city funding the tourism bureau might lose.

“I haven’t determined a number,” he said.

Einar Forsman will be among those watching the advisory group’s work closely. The former Rockford city administrator has seen firsthand how the Redevelopment Fund operates and how its focus has shifted over the years.

Today, Forsman serves as president of the Rockford Area Chamber of Commerce. He’s also a member of the RACVB board, the Coronado board and a former member and chairman of the On the Waterfront board of directors.

“I think the best intent of the mayor’s advisory committee is to ensure that all these groups have stability going forward and accountability for how they operate,” he said. “The committee understands there may be risks associated with each decision that has to be made and we have to look at those straight in the face and determine if they are acceptable risks.”

Reach Assistant Business Editor Isaac Guerrero at iguerrero@rrstar.com or 815-987-1394.